Annual Demand for Room Rentals in Australia

Overview

Each year, well over 1.5 million people in Australia are seeking to rent a single room (rather than an entire property) in shared accommodation. This room-by-room rental demand comes from several key groups: international students, domestic students studying away from home, working holiday visa holders (backpackers), and young professionals sharing housing.

Rising rental costs, limited availability, and urban concentration have made room rentals a vital part of the housing ecosystem, especially in cities like Melbourne, Sydney, and Brisbane.

1. International Students

• Total: Over 1 million international students were enrolled in Australia in 2024.
• Estimated demand: 50% (approx. 511,000) may seek affordable room-based housing.
• Key Facts:
  • Over 70% live off-campus in private rentals.
  • Purpose-built student accommodation covers less than 6% of total need.
  • Most students stay for multiple years, providing consistent demand.
  • Major cities host 80%+ of this student population.

2. Domestic Students

• Total: Over 1.1 million domestic university students.
• Estimated demand: Tens of thousands relocate from rural areas yearly.
• Key Facts:
  • Around 22% of students live in shared housing.
  • High rent forces many to share rooms or live further from campuses.
  • Many students opt for shared living throughout their 3–4 year degrees.

3. Working Holiday Visa Holders (Backpackers)

• Total Visas Issued (2023–24): 234,556 — a record high.
• Key Facts:
  • Stay on average 9.4 months.
  • Typically rent shared rooms for weeks or months.
  • Shift between cities and regional areas based on job opportunities.

4. Young Professionals in Shared Housing

• Total Group Households: Approx. 400,000 nationwide.
• Estimated individuals: 800,000+ people in shared living situations.
• Key Facts:
  • Flatmates.com.au reports record demand in 2023–2024.
  • Over 100 applicants per room listing in some suburbs.
  • Shared living is now a long-term solution due to affordability.

Summary
Room-by-room rentals are no longer a fringe segment — they represent a core component of Australia’s housing landscape. Over 1.5 million people seek room rentals each year, including:

• 500K+ international students
• 200K+ domestic relocating students
• 200K+ working holiday visa holders
• 800K+ young professionals & locals in shared housing

Middow operates at the heart of this demand, serving international students and young renters seeking flexible, furnished housing options.

Sources:
ABS, Department of Education, CBRE, The PIE News, Backpacker Job Board, Flatmates.com.au, RealEstate.com.au

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